In our Real Money Talk series, Australians from all walks of life tell us about their money stories – the good, the messy, and the extraordinary.
We want to help you grow your own long-term wealth, so we’ve been looking at what higher-net worth people do a little differently.
There could be new habits you want to adopt so you, too, can be a high-net worth individual.
By the way, we’ve changed the names of these community members for their privacy.
1. Automate your success
Good money habits can make success automatic.
Marcus, 32, has $1.3 million worth of assets, and a $575,000 mortgage. He nurtures his wealth by directing his income to different accounts as soon as he gets paid.
“We have automatic bank transfers that happen when I receive my salary to subordinate accounts,” he wrote. “I have separate budgets for my mortgages, savings, ETF/Managed Funds, travel, fixed expenses, every day expenses, and splurges.”
Len, 36, has a net worth of $625,500. He’s on track to reach his goal of home ownership sooner now that he automates his super.
“I sacrifice $150 a week of my income into my super as part of the First Home Super Saver scheme, which I have been doing for nearly five years now.”
Takeaway: consider automating your savings, investments, and super if you want to be a high-net worth individual.
Here are some ideas:
2. Maximise your benefits by starting early
One of the most common regrets of our high-net worth community members is that they didn’t start earlier.
Bec, 47, has a net worth of $3.84 million… now. But she says she could be worth more.
“I would not have spent money so profligately. I started work at 17 but spent everything. I have no savings to show from my 20s.”
By contrast, Millie, 19, has a net worth of $50,000.
“I’ve built my net worth by prioritising two key factors: increasing my income and maintaining disciplined saving habits.”
Takeaway: The best time to start making money moves could be right now if you want to be a high-net worth individual.
Here are some ideas for getting started:
3. Keep freedom in your budget
It can be tempting to live payslip to payslip, but the higher net-worth people in our midst made sure to keep some wiggle room in their budgets.
Robert is a 55-year-old with a net worth $5.5 million.
“Pay yourself first,” he says. “Don’t gamble, don’t drink too much, and don’t buy what you don’t need.”
Mickey, a 41-year-old worth $490,000, says that because of her upbringing, she’s “really great at saving. I can live quite happily on very little.”
Takeaway: If you currently live payslip to payslip, figure out if it’s stopping you from becoming a high-net worth individual.
Here are some ideas:
4. Make your money work harder
Many of our higher net-worth community have focused on increasing their income.
Marcus, again, says his savings were boosted by his work ethic.
“I’ve always been a great saver and worked 40 hours per week between five casual jobs while studying full-time at university.”
Holly, a 26-year-old with a net-worth of $240,000, has aggressively moved up the public service ladder.
“I’ve always stayed in a role long enough to build my knowledge and start applying for jobs in the pay band above.”
Takeway: Consider if there are ways to maximise your income if you want to become a high net worth individual.
Here are some ideas:
- Going for it: Stories of people taking on the future
- How to turn your income into wealth
- How to start making passive income
Interested in more secrets of the wealthy?
Check out what our millionaire Spaceship investors know about spending money.
Many of these higher-net worth people are building their wealth with Spaceship Voyager.
Download the Spaceship app to see it for yourself.
